75Payment of balance of winning price

75 Payment of balance of winning price

(1) If, for a winning bidder, the balance of the upfront winning price is greater than zero, the ACMA must notify the bidder by registered mail of: (a) the balance of the upfront winning price; (b) the delayed winning price; (c) the dates on which the three instalments for the delayed winning price must be paid; (d) the amounts of those instalments (including the effect of the deposit (if any) paid under section 38 on the first auction instalment); and (e) the date, not earlier than 10 working days after the date of the notice, by which the bidder must give the ACMA written notice whether it elects to pay: (i) the balance of the upfront winning price; or (ii) the delayed winning price. (2) If a winning bidder gives the ACMA written notice that it elects to pay the balance of the upfront winning price by the date mentioned in paragraph (1)(e): (a) the ACMA must notify the winning bidder by registered mail that the ACMA has received the bidder’s election; and (b) the balance of the upfront winning price must be paid by the winning bidder to the ACMA on behalf of the Commonwealth no later than 31 January 2018.

Note: For information on how the balance of the upfront winning price must be paid, see section 7.

(3) If a winning bidder gives the ACMA written notice that it elects to pay the delayed winning price by the date mentioned in paragraph (1)(e): (a) the ACMA must notify the winning bidder by registered mail that the ACMA has received the bidder’s election; and (b) the delayed winning price must be paid by the winning bidder to the ACMA on behalf of the Commonwealth in accordance with the following schedule: (i) an instalment of: (A) 48.0051 per cent of the gross auction price; less (B) the deposit (if any) paid by the bidder under section 38; (the first auction instalment for the winning bidder) must be paid no later than 31 January 2018; (ii) an instalment of 26.6315 per cent of the gross auction price, multiplied by 1.05 (the second auction instalment for the winning bidder) must be paid no later than 31 January 2019; (iii) an instalment of 25.3634 per cent of the gross auction price, multiplied by 1.1025 (the third auction instalment for the winning bidder) must be paid no later than 31 January 2020; and (c) the winning bidder must give the ACMA the delayed winning price bank guarantee in accordance with subsection (7) by the date mentioned in subparagraph (b)(i).

Note: For information on how the delayed winning price must be paid, see section 7.

(4) If the ACMA becomes aware that a notice under subsection (1) contains a material error, the ACMA must give the winning bidder a revised notice by registered mail. (5) If a revised notice is given under subsection (4): (a) the ACMA must include in the revised notice a date, not later than 15 working days after the date of the revised notice, by which the bidder may give the ACMA notice whether it has elected to pay the balance of the upfront winning price or the delayed winning price; and (b) subsections (2) and (3) apply as if the date mentioned in paragraph (1)(e) were the date included in the revised notice; and (c) any previous notice given by the winning bidder under subsection (2) or (3) is of no effect. (6) If a winning bidder does not give the ACMA written notice whether it elects to pay the balance of the upfront winning price or the delayed winning price by the date mentioned in paragraph (1)(e), the bidder is deemed to have given the ACMA written notice that it elects to pay the balance of the upfront winning price, under subsection (2). (7) If a winning bidder gives the ACMA written notice that it elects to pay the delayed winning price by the date mentioned in paragraph (1)(e), the winning bidder is not entitled to be issued a spectrum licence unless the winning bidder gives the ACMA an irrevocable bank guarantee securing the secured auction amount, issued by an Australian-owned authorised deposit-taking institution (as defined in the Banking Act 1959) which is a bank, in a form approved by the ACMA (delayed winning price bank guarantee), no later than the date mentioned in subparagraph (2)(b)(i).